SHOALS TECHNOLOGIES GROUP -A (SHLS)
US82489W1071 - Common Stock
Taking everything into account, SHLS scores 7 out of 10 in our fundamental rating. SHLS was compared to 87 industry peers in the Electrical Equipment industry. SHLS has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. SHLS is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make SHLS a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year SHLS was profitable.
SHLS had a positive operating cash flow in the past year.
Each year in the past 5 years SHLS has been profitable.
SHLS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
SHLS has a Return On Assets of 4.74%. This is in the better half of the industry: SHLS outperforms 75.29% of its industry peers.
Looking at the Return On Equity, with a value of 7.34%, SHLS is in the better half of the industry, outperforming 72.94% of the companies in the same industry.
SHLS has a Return On Invested Capital of 9.02%. This is in the better half of the industry: SHLS outperforms 78.82% of its industry peers.
SHLS had an Average Return On Invested Capital over the past 3 years of 9.13%. This is in line with the industry average of 10.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 7.34% | ||
| ROIC | 9.02% |
ROA(3y)8.91%
ROA(5y)11.48%
ROE(3y)46.53%
ROE(5y)N/A
ROIC(3y)9.13%
ROIC(5y)12.05%
1.3 Margins
SHLS has a Profit Margin of 8.18%. This is amongst the best in the industry. SHLS outperforms 81.18% of its industry peers.
SHLS's Profit Margin has been stable in the last couple of years.
The Operating Margin of SHLS (16.15%) is better than 87.06% of its industry peers.
In the last couple of years the Operating Margin of SHLS has grown nicely.
SHLS has a Gross Margin of 34.44%. This is in the better half of the industry: SHLS outperforms 75.29% of its industry peers.
In the last couple of years the Gross Margin of SHLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.15% | ||
| PM (TTM) | 8.18% | ||
| GM | 34.44% |
OM growth 3Y-8.72%
OM growth 5Y8.61%
PM growth 3Y-24.84%
PM growth 5Y-0.27%
GM growth 3Y-3.15%
GM growth 5Y4.85%
2. Health
2.1 Basic Checks
SHLS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, SHLS has more shares outstanding
Compared to 5 years ago, SHLS has more shares outstanding
Compared to 1 year ago, SHLS has an improved debt to assets ratio.
2.2 Solvency
SHLS has an Altman-Z score of 4.10. This indicates that SHLS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of SHLS (4.10) is better than 80.00% of its industry peers.
SHLS has a debt to FCF ratio of 2.23. This is a good value and a sign of high solvency as SHLS would need 2.23 years to pay back of all of its debts.
SHLS's Debt to FCF ratio of 2.23 is amongst the best of the industry. SHLS outperforms 87.06% of its industry peers.
A Debt/Equity ratio of 0.33 indicates that SHLS is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.33, SHLS is in line with its industry, outperforming 50.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | 2.23 | ||
| Altman-Z | 4.1 |
ROIC/WACC0.84
WACC10.71%
2.3 Liquidity
SHLS has a Current Ratio of 2.45. This indicates that SHLS is financially healthy and has no problem in meeting its short term obligations.
SHLS has a better Current ratio (2.45) than 64.71% of its industry peers.
SHLS has a Quick Ratio of 1.88. This is a normal value and indicates that SHLS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of SHLS (1.88) is better than 71.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.88 |
3. Growth
3.1 Past
SHLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 50.00%, which is quite impressive.
Measured over the past years, SHLS shows a very strong growth in Earnings Per Share. The EPS has been growing by 37.19% on average per year.
The Revenue has grown by 49.52% in the past year. This is a very strong growth!
The Revenue has been growing by 36.34% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)50%
EPS 3Y4.99%
EPS 5Y37.19%
EPS growth Q2Q-20%
Revenue 1Y (TTM)49.52%
Revenue growth 3Y40.71%
Revenue growth 5Y36.34%
Revenue growth Q2Q37.74%
3.2 Future
Based on estimates for the next years, SHLS will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.92% on average per year.
The Revenue is expected to grow by 17.42% on average over the next years. This is quite good.
EPS Next Y2.47%
EPS Next 2Y21.49%
EPS Next 3Y20.36%
EPS Next 5Y12.92%
Revenue Next Year3.31%
Revenue Next 2Y14.97%
Revenue Next 3Y17.41%
Revenue Next 5Y17.42%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.10, which indicates a correct valuation of SHLS.
Based on the Price/Earnings ratio, SHLS is valued cheaply inside the industry as 85.88% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of SHLS to the average of the S&P500 Index (25.20), we can say SHLS is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.76, SHLS is valued correctly.
88.24% of the companies in the same industry are more expensive than SHLS, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of SHLS to the average of the S&P500 Index (21.60), we can say SHLS is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 13.76 |
4.2 Price Multiples
74.12% of the companies in the same industry are more expensive than SHLS, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, SHLS is valued cheaper than 87.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.72 | ||
| EV/EBITDA | 17.88 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
SHLS has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as SHLS's earnings are expected to grow with 20.36% in the coming years.
PEG (NY)5.7
PEG (5Y)0.38
EPS Next 2Y21.49%
EPS Next 3Y20.36%
5. Dividend
5.1 Amount
SHLS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SHOALS TECHNOLOGIES GROUP -A
NASDAQ:SHLS (4/23/2024, 7:25:08 PM)
After market: 8.45 -0.01 (-0.12%)8.46
+0.03 (+0.36%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryElectrical Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.1 | ||
| Fwd PE | 13.76 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)5.7
PEG (5Y)0.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.74% | ||
| ROE | 7.34% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.15% | ||
| PM (TTM) | 8.18% | ||
| GM | 34.44% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.33 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.45 | ||
| Quick Ratio | 1.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)50%
EPS 3Y4.99%
EPS 5Y
EPS growth Q2Q
EPS Next Y2.47%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)49.52%
Revenue growth 3Y40.71%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y